Use of OFAC Data in Spotlight: Consumer Reporting Agency Sued Again for False Positive Terrorist Watch List Data in Consumer Reports
The U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) maintains the Specially Designated Nationals (“SDN”) list, which is published to identify suspected terrorists and other bad actors. US persons are generally prohibited from dealing with anyone on the list, so companies and governments regularly run checks against the SDN list and other “terrorist watch list” data to ensure that they are not doing business with such bad actors. Some consumer reporting agencies (“CRAs”) provide these checks to alert users of a possible terrorist in order to prevent prohibited transactions with such individuals. Often these users are legally required to run such checks.